On Friday, Fitch published a brief piece entitled, "Largest U.S. MMFs Reduced Euro Bank Exposures Prior to Market Volatility". It says, "The largest U.S. money market funds (MMFs) significantly reduced their exposures to European bank securities based in sovereigns that have experienced heightened investor concern, according to a Fitch Ratings study. Fitch analyzed the portfolios of the 10 largest U.S. prime MMFs from the second half of 2006 to the present. The analysis reviewed the funds' exposures to European banks' CDs, commercial paper (CP) and bank-sponsored asset-backed CP (ABCP). The sample represents $740 billion or approximately 45% of the total 1.7 trillion U.S. prime fund universe. Fitch's review also found that MMF exposure to specific names has changed notably over the same period, with the largest 10 bank exposures as of 2H'07 including several institutions that subsequently experienced pronounced stress during the financial crisis." See also, the Wall Street Journal's coverage, "European Bank Debt Still Appeals to Funds". The Journal says, "Credit woes haven't diminished money-market funds' appetite for European bank debt. The largest U.S. prime money-market mutual funds in recent months have boosted their exposure to European bank holdings like certificates of deposit and commercial paper, according to new figures set to be released Friday by Fitch Ratings. Such holdings now account for about 39% of the funds' assets, up from 37.5% in the first half."

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